Tax basically means a form of financial levy or charge that the government gets from its citizens and eligible taxpayers within its boundaries so that it can raise funds for running its operations as well as for public expenditures.Failure of an individual to pay this levy can attract legal punishment. There are two types of taxes that are direct and indirect. One can pay tax either by money or labor equivalent.Each country normally has its own system and mechanism of collecting tax.
On the other hand, bookkeeping involves keeping a record of personal or business financial transactions. In fact, bookkeeping forms part of accounting practices and procedures that provides a room for reference in regard to past financial transactions that have taken place. This activity can be carried out using various methods such as double-entry and single-entry record of transactions among others.On the other hand, Bookkeeping Irving may involve any activity that a bookkeeper does in order to keep financial transactions records.
Individual Tax services and Business Tax services Irving share certain similarities and differences. Therefore, businesses tax services will have some differences when compared to individual tax services. Some of the differences that exist include.
A. The form that one uses to file the returns.
Individual Tax Irving Services requires the person making the file to use form 1040 when making submissions.On the other hand, Irving Business Tax services will involve filling of form 1120 for corporations, 1065 for general partnership business and 990 for nonprofit organizations. On the side of a sole proprietorship, form 1040 is used since the business falls under individual tax income.
Business tax filling attracts more deadlines as compared to individual tax services. The deadlines imposed are in terms of annual, quarterly and monthly payroll deadlines.In quarterly payments, the payments should be done on fifteenth of January, April, June, and September. Between the first quarter and half of the calendar year, that is around March or April and May are the months that annual taxes should be paid.
various deductions are made on business tax. This form of tax contains different deductions made on almost every payment that is made. The only deductions that can be found in individual tax are write-offs and relief which are offered easily.Individual tax does not have more options, unlike business tax.
D. Tax Rates charged.
The rates in which individual and business rates are charged is different. Sole proprietorship attracts individual tax rates. The rates fall between 10 and 36.9 percent. For business, the rate is about 15 and 39 percent.